Allegiance Bancshares Inc. Company Profile

Allegiance Bancshares, Inc. is a Texas corporation and registered bank holding company headquartered in Houston, Texas. Through the Company’s wholly-owned subsidiary, Allegiance Bank (the “Bank”), it provides a diversified range of commercial banking services primarily to Houston metropolitan area-based small to medium-sized businesses, professionals and individual customers. The Company believes the size, growth and increasing economic diversity of the Houston metropolitan area, when combined with the Company’s super-community banking strategy, provides the Company with excellent opportunities for long-term, sustainable growth. The Company’s super-community banking strategy, which is described in more detail below, is designed to foster strong customer relationships while benefitting from a platform and scale that is competitive with larger local and regional banks. The Company believes this strategy presents a significant market advantage when serving small to medium-sized business customers and further enables the Company to attract talented bankers.

The Company currently operates 16 full-service banking locations in the Houston metropolitan area. The Company has experienced significant growth since it began banking operations in 2007, resulting from both organic growth, including de novo branching, and two whole-bank acquisitions.

The Company’s objective is to grow and strengthen its community banking franchise by deploying its super-community banking strategy and by pursuing select strategic acquisitions in the Houston metropolitan area. The Company is positioned to be a leading provider of personalized commercial banking services by emphasizing the strength and capabilities of local bank office management and by providing superior customer service. The Company has made the strategic decision to focus on the Houston metropolitan area because of the Company’s deep roots and experience operating through a variety of economic cycles in this large and vibrant market.

Super-community banking strategy. The Company’s super-community banking strategy emphasizes community involvement by its directors, officers and employees, which allows the Company to be responsive in developing its products and services. The Company’s approach produces a clear competitive advantage by delivering an extraordinary customer experience and fostering a culture dedicated to achieving both superior external and internal service levels. Greater efficiency results from the Company’s focus on serving a select, but significant, portion of the overall banking market, and on the operational leverage that results from a market share driven by geographic concentration. The Company focuses on establishing personal relationships with customers through superior service, which is accomplished in part by empowering Company personnel to make certain business decisions at a local level in order to respond quickly to customers’ needs. The Company emphasizes lending to and banking with small to medium-sized businesses, for which it believes loans can be priced on terms that are more attractive to the Company than would be achieved by lending to larger businesses. The Company operates full-service decentralized branches and employs lenders with strong underwriting credentials who are authorized to make loan and underwriting decisions up to prescribed limits at the branch level. The Company supports branch operations with a centralized credit approval process for larger credit relationships, loan operations, information technology, core data processing, accounting, finance, treasury and treasury management support, deposit operations and executive and board oversight.


The Company plans to continue to emphasize the super-community banking strategy to organically grow its presence in the Houston metropolitan area through:

increasing the productivity of existing bankers, as measured by loans, deposits and fee income per banker, while enhancing profitability by leveraging the Company’s existing operating platform;

focusing on local and individualized decision-making, allowing the Company to provide customers with rapid decisions on loan requests, which the Company believes allows it to effectively compete with larger financial institutions;

identifying and hiring additional seasoned bankers in the Company’s existing and target markets in the Houston metropolitan area who will thrive utilizing the Company’s super-community banking model, and opening additional branches where the Company is able to attract seasoned bankers; and

developing new products designed to serve the increasingly diversified Houston economy, while preserving the Company’s strong culture of risk management.

The Company offers a wide range of commercial and retail lending services, including commercial loans, mortgage loans, home equity loans, personal loans and automobile loans, among others, specifically designed for small to medium-sized businesses and companies, professionals and individuals generally located within Texas and primarily in the Houston metropolitan area.